months to come and market forces at pboc sing their is no economic basis for the constant devaluation. follow me on twitter. @rishaadtv. 21 years is a notable timeframe, david? isid boy -- david: the yuan set for the biggest two-day drop in 21 years. said, let me start with the equity markets right now. that is happening across the region. the biggest drop here in over a month. shanghai not really but have a look at southeast asia. singapore with the biggest drop

in four years. jakarta getting underway here. taiwan and the philippines, south korea accelerating those losses as well. 6.41 is the on short rminbi. now andare seeing right the reason why that pboc is try to get ahead of this is that the market is now producing against the one. you're seeing those fault one after the other. those comments in just a moment but with that said let's slice and dice across the sector groups across the region. the chinese airlines is one group continuing to get consumer services. this is asia. you're seeing a 45 out of the

49er falling. to be amongct it the biggest losers in this space. look at the mining stocks. you have resources and chemicals let's get in there and take a quick look. 3% lower and obviously the thinking right now is there selling and asking questions later but the reduced purchasing power of the weaker renminbi weighing on anything exported from china. whether it is minerals, luxury goods capital goods, so on and so firth. i believe it here for now but i will be back later on. devaluationt continuing with its own repercussions globally. we had more of this. we had authorities working in tandem with the people's bank of china there under this new

fixing regime. stephen engle has been on top of this right from the get-go. what are we looking at? rateen: we saw that currently down about 1.3%. today marked the first time that china set the reference rate based on the new market-based mechanism. course they have revised their methodology for setting the daily reference rate taking into effect today by which the currency can then trade 2% on either side. how they set that was rather opaque but under these new reforms announced yesterday market makers will have greater say considering the previous base close, demand as well as changes in other major currencies went making their submissions. it was set today slightly weaker from yesterday's close and the offshore you want tumbled

immediately and the onshore spot rate against the dollar opened 1% weaker and has continued to be weaker this morning so far. the pb oc made that one-off adjustment down because they isd the real exchange rate strengthening and two months because of the defense opaque of the strengthening dollar and that has hurt exporters. it sent shockwaves with many regional currencies falling fearing china will lead a new regional currency war to aid its own exporters. the central bank is out this morning, the pboc saying there is no economic basis for a constant devaluing. have said they will maintain a stable and reasonable rate after yesterday's one-off move but the market seems to be reacting a bit differently. let's see how much they dip into currency reserves to support the one. the imf by the way is considering whether to include the yuan in its basket in its

next review. they are out with a statement this morning saying it appears to be a welcome step, the reforms that china announced yesterday on the market-based fixing mechanisms. the welcome step in regard to the ongoing review of the basket. the announced change has no direct implications at this moment. rishaad: looking at this story throw the course of the show. tweet me your thoughts and include the #trending business. news's finance reporter joins us now from sydney. another impressive set of numbers but it is doing what others are doing here as well because it has to raise the australian regulator. >> that's right. the bank came in last of the big four australian lenders to raise

about $5 million in capital. the rating so far to $16 billion and that is probably not enough. the probably need to increase it $7 billion more. billion they have even 2009ded that they race and during the global financial crisis. the capital rating is largely due to a new regulator requirements to make things stronger to face a housing downturn and to put them among the global lenders. they came off with 5 billion that was at $3 billion racing by bank.d 2 billion by west

if you look at the cba rating today they are doing a rights offering which is a 13% discount . i just got off the analyst call where the cfo mentioned they will have to result -- ipo are still ahead of the in terms of the level of capital that they hold and to ensure that the dividend payout ratio does not drop. mentioned the don't want to be forced to sell any assets to meet capital requirements and they are fairly covetable going forward. rishaad: thank you very much indeed joining us from sydney. let's have a look at some of the other stories where watching today. >> warren buffett risks a thegrade and s&p could cut

company's rating after it agreed to by a manufacturer for more than $37 billion. the senate berkshire hathaway was put on creditwatch negative because of uncertainty around the funding of the acquisition and how that may affect current cash resources and leverage metrics. buffett has built berkshire over the past five decades largely by using premiums held as insurance units. the operation now includes power companies, retailers, manufacturers and so on. the deal for position is among his biggest effort and a rare instance of using debt to finance a deal. buffett has long said he likes to keep a sizable financial cushion to deal with major claims. the have a aa rating from s&p which we do third-highest of 10 investment grade levels. new front and cybercrime u.s. prosecutors say they have broken up and alleged

insider trading ring that relied on hacking corporate press releases before they were made public. they say hackers accessed 150,000 releases including corporate data on earnings that could be used to anticipate stock market moves and make profitable trades. over five years they infiltrated the servers of prnewswire, market wire and business wire. they pass them to associates in the u.s. would trade shares in boeing, hp and oracle. iny arrested five traders pennsylvania and four others remain at large. u.s. prosecutors say the men netted $30 million. but the broader lawsuit says more than two dozen individuals and companies were involved in the scheme that earned $100 million. and sales continue to slump in the world's largest auto market. sales and china falling to a 17

month low. 2.5%l deliveries were down despite steep price cuts and discounts. manufacturers are warning of potential price wars. car pricing portal says discounts of at least 30% are being offered in major cities on hundreds of models. foreign automakers are facing hundreds of challenges as they compete with cheap and local manufacturers. not to mention that the weaker you want/is the value of repatriated profit. analysts say that the automaker cash flow will be impacted and u.s. automakers will lose the most because of the strong dollar. their biggest exporter says the move to weaken the yuan will help it sales overseas. rishaad: another story we are following on bloomberg business print google's new conglomerate. have a look at it.

coming up later on the program, prices falling as demand from china remains weak. profits doubling. find out why when we give it over to mom by but after this hittingeak, they're record highs but entertainment companies are growing more cautious. will your from one of the biggest next.

rishaad: e-commerce companies continue to tell us they are seeing more and more people buying online. there is evidence that consumers are still very wary about using credit cards online and frequent cases of hacking and fraud only bolster their fears.

paypal has introduced a secure service which it says gives buyers complete protection. southeast that paypal general manager and he is joining us. tell us about this and how do you make people trust online purchases? guest: thank you so much for having me on, it is an absolute leisure. what we have seen is double-digit growth and e-commerce and one of the biggest fears we have is what we call buyer phobia. they're concerned about two things that the financial information is not secure and secondly that they may not get the product that they ordered. so if the order of blue shirt and a richard comes in that is a thosencern and 60% of from singapore are afraid of becoming a victim of cyber crime. we have actually taken this feedback and launched a program known as buyer protection. we wille buying online

protect you 100%. if your card was stolen or hacked or you ordered a product that was not as described on the website we will fully cover you. first type ofhe programs in the industry where we protect the buyer and the seller. rishaad: said is the cost for all on you if someone were to buy counterfeit goods in that supplier is no longer around? guest: we actually fully cover the buyer and the way that we see it and justify it is we are expanding the market but there are a lot of people not doing e-commerce transactions because they feel they do not have trust. the do not feel it is going to be resolved properly or they will get a product they did not order. so by giving this assurance to customers we are expanding the market. rishaad: but the thing is think phobia andd fake a

wapophobia" which are to other -- to others it types of buyer phobia. guest: if you get a product which was not as described we will fully cover you and we exit take one step forward beyond the industry standard of covering in valuables. if you go to a website and it looks like a four star hotel on the website and you land there and it turns out to be a one star hotel we will even cover for that and give back the money to the customer. the reason we are doing this is gnome -- not so much for the bottom line but to see that we are instilling confidence in the transaction and expanding the overall market. how can you guarantee

that credit card details are safe? we've seen attacks on companies like ashley madison -- hugely embarrassing for the company and the members there and the american government employees. how can you have confidence that credit card details are absolutely secure? guest: we are a unique business model. we have a solution or connect the buyer and the seller. a different model from other payment companies with a credit card information is stored and maybe not such a secure fashion. we are state-of-the-art security and an extremely exempt fraud model. one of the lowest fraud rates in the industry what is more toortant as we are trying instill confidence in e-commerce transactions completely protecting not only the buyer but also the seller. rishaad: what about money-laundering? guest: that is an interesting

question. we have an immense investment to make short the system is not misused for money laundering or nefarious purposes. bitaad: tell me a little about it. it can be very simple money laundering, can't it? guest: it can be but you would be amazed by the amount of checks and balances we have to make sure. the reason why we are so confident about the fact that goodransactions are because we know both the buyer and the seller so because we have so much information within the transaction we can be very sure the product is not being misused. talking to you. have a good one. stories makinge headlines around the world. dutch prosecutors say parts of what could be a missile has been found in the wreckage of the malaysia airlines plane which

crashed in the ukraine. it is the first time investigators have confirmed possible evidence that the plane was shot down. all 298 on board died when it crashed into light last year. who fireds cannot say the missile but they say it appears a russian-made system. up the searchpped for malaysia airlines mh 370 with land and air operations off the coast of reunion island. it follows the discovery of a piece of wing which probably came from the missing wing. other heaven asked to carry out similar searches in case debris has washed up on their sure. it is believed it came down and the southern ocean and the debris may have floated west. has named the lawyer to lead the reform committee as it tries to recover from corruption allegations. director general of

the ioc went out with the salt like city bribery scandal. it would deliver her puzzles the next february's fifa congress. 14 officials from their world governing body have been indicted by u.s. prosecutors on corruption charges. rishaad: up next greece agrees to the terms of a third bailout just in time for its next ecb payment and what athens must do.

rishaad: you back with trending business. greece confirming the details of a third bailout deal. there's still a vast political process ahead and a particularly tight timeline. here is mark barton. after two weeks of intensive initialeece forged agreements with creditors with measures on pension changes to taxes. they will unlock about 85 billion euros in funds. as they neednext to have a deal before in august 20 greek payment is due. the quicke needs is release of about 20 billion euros to create a buffer for its

banks and to make loan payments. before that can happen, agreements on the technical aspects of the deal must be followed with a political agreement according to the european commission. it is over to the greek parliament to package the agreed reforms before a meeting with euro area finance ministers tentatively scheduled for friday. the newspaper a draft of the memorandum of understanding contains 35 measures including steps to clamp down on early retirement opening up energy and pharmaceuticals markets and changes to taxes for shipping firms. the news applauded with greek stocks rising for a fourth day. last the index sunk wednesday it has rebounded almost 11% making it the best performing global stock market in that period. greek bond deals also continue to drop with the yields falling below 15% in june.

the devil is in the details. from euroe reaction area countries as the specifics of the deal the, parent. rishaad:, let's have a look at some of the other deals. we try to reassure the u.s. regulators that it will publicize airbag recalls and do what it canst to reach them effectively. they're also working to maximize the number of vehicles repaired and to cut air bags have been linked to eight deaths and is among the largest recall in history. let's have a look on what is been going on in hong kong with police rating's -- raiding uber's local office and made five arrests. there are arrested on suspicion

of illegally carrying passengers without insurance. uber went on to say that hong kong drivers are all insured and they undergo oh extensive background tracks. uber is facing resistance from around the world. this will expand into the united states with prices more than 30% above their closing price august 6. that was the day before a potential sale was reported. they get a special dividend of $.50 a share they have been eyeing stakes in american rivals as the growth slows at home. jumping by 6% in new york.

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get excited for the 1989 world tour with exclusive behind the scenes footage, all of taylor swift's music videos, interviews, and more. xfinity is the destination for all things taylor swift. rishaad: look at our top stories. yuan set for its biggest two-day drop in two decades. went 1.6 percent down yesterday even as the central bank insisted that no economic basis for further selloffs. they're adding to concerns at the weaker in will reignite the --ional currency war and this coming off of a 2% increase in second half profits.

investors advising one share for every 23 they own is a 13% discount take tuesday's closing price. a strong's big four banks have revealed they expected to meet stricter regulations. in japan falling to their lowest level in a most six years. the bank of japan also releasing limits from its july meeting with most members agreeing that easing is having the desired effect on the economy and should continue until the target of 2% inflation is achieved and is stable. having a look at what has generally been moving the markets. it is pretty obvious. david: it is really about china. what is happening today and what happened yesterday is one of the perfect examples of white china matters. andency moves 2% to 3% down you see a broad-based selloff.

emerging markets in fact getting tipped into the bear market early this morning and $19 billion is the value of market cap. just off the top emerging markets stocks. that is what is happening across markets right now. not a good day in fact shaping up to be worse than yesterday. gettingts though here sold off but not as bad as yesterday. it is rebalancing to that extent. the reason i mentioned this is it is the first to come out and perhaps react to what is happening in china. they actually widened their trading band of the currency. china is trading the yuan but it is not so much where the trading band is that where the parity rate is. you can only trade 1.1%. that is the spot market.

six spots. we back to two-year levels. it goes all the way back a few years. there is the move right there. b&h make it -- market is the off short rim and be. the lowest level. you conflict this and much of the lowest level in over four years. that is the biggest story and i will leave it there. of yuanond day devaluation having global repercussions. set the reference rates slightly weaker and it tumbled again. let's bring in stephen engle. it is a new regime it would seem. david: we have seen the yuan stay pretty stable against the dollar but it is strengthening

considerably against these other currencies that have been weakening. what we saw today is that it opened up 1% lower and now 1.5% weaker on top of the 1.8% weakening that we saw yesterday. this is on pace for the biggest two-day weakening of the yuan since 1994. and the chinese central bank, the pboc has been out saying there is no economic basis for a constant evaluation of the roman be. yesterday said it was a one-off depreciation and that there are going to further accelerate the reform of the fixing rate which has been a big sticking point. it is not just a matter of widening the trading band have to get more capacity in the fixing rate. >> they have a special growing rights in their joined that basket of currencies in order to get recognition ultimately. the imf cannot with a statement on that -- how would you describe it -- benign.

a welcome step that is the reforms announced yesterday to have market makers have more input on the daily fixing rate but the exact impact will depend on how the new mechanism is implemented in practice. they can come if up with new rules and reforms but it is all in the implementation. the ongoing review of the basket, the announced change from china has no direct implications for the criteria used in determining the composition of the baskets. rishaad: it has been concluding that way though. this iss like near term good but let's watch and see how it happens. all too interesting today has been the response from vietnam. who have to watch this for now going forward. rishaad: someone say that was the start of a currency war.

the secondave had day of a reasonable devaluation. >> it's not a bad thing for some export nations in light of what the fed is about to do. >> if china does get back on its feet that is good for exports but the near-term might be 2% or 3%. rishaad: it will not make a huge difference but it does a huge difference when you look at what is going on in the u.s. during an election race with trump. >> let me first bring up the pressure because he is speaking -- bring up victor sure. there he noted economist and he says there is no economic rationale for what china is doing it is just a plan with its up session to reach targets rearing its ugly head again. past six periods often tells us that such an expect -- such an up session comes with law -- height long-term costs and

donald trump have to bring up because he is the full leader in the republican race for the white house and not surprisingly he was very outspoken against what china did. he says it's not -- sucks the blood out of united states another ill-timed blood reference from donald trump but let's here the soundbites. no respectchina has for president obama whatsoever. you have to take strong action, how can they compete? they continuously cut their currency. i have been saying this for years they have been doing it for years this is an just starting. this was the largest evaluation they have had in two decades they are making it impossible for our businesses and our companies to compete. they think we are run by a bunch of idiots. >> actually donald trump, let's bring up the 10 year chart they have not been consistently depreciating the currency. i was here in hong kong when they did allow it to strengthen

in july 2005 and since then it has been appreciating at about 22%. that is an appreciation against the dollar, not a deeper she asian. depreciation.t a rishaad: here is the point. he has a line of clothing. made -- guess where? >> here? [laughter] fuel political opposition in the u.s. because there is a lingering opposition view of china. it has to be on the radar for .ome rishaad: not a surprise that china devaluing the yuan has been at the top of the page. >> compare it to what brazil or japan has done in the past year or 1.5 years. i think the sale was shocking

and unexpected. it will buy them some room to breathe. not an help but it is essential fundamental driver behind the move. as a china is very clever to do what they're doing because a big part of their stability as exports. been trying to increase imports and that is doing ok but the exports are tough. china is not like it used to the -- used to be. although it is very efficient and is not quite the same because of the renminbi and we see that as an opportunity to improve the margin. >> nothing immediately, it was all targeted at getting into the

fdr, and to create a more market-based exchange rate. the reaction from the u.s. treasury was fascinating and it was relatively positive compared to how we could have been. it shows that china is on course. rishaad: knows what people are making so far of the move by the people's bank of china and the effective devaluation of the yuan. gold will move up because it is seen as a haven trade. it has been to climb the last 1.5 years. miners managed to struggle the worst of us. the evolution mining is picked up two acquisitions in its own backyard. into a fresh gold falls

depressed market. , the appetite for gold remains as strong as ever. here is the finished product and despite the recent fall, good fortune is still falling on in localn miner so currency this is $1500 an ounce and the whole brick is about $.75 million. just in 2013ing when the gold price began its steep decline. shareholders voted almost unanimously to scoop it up one of two acquisitions making it -- making australia the world's second-biggest gold producer. ceo says that foreign miners

in general have been feeling the squeeze. gearing the have need to be looking at and most of their production is in u.s. dollars. related to their rather than the asset quality which we think is terrific. >> it seems counter intuitive but the mood remains from -- remains relentlessly upbeat. >> there is a level of optimism out there. a lot of the gold miners would be producing at a cost higher than the current prevailing price. stays the samet the deals seem certain to keep coming. rishaad: comeback kid.

alibaba going from the biggest ipo to the biggest shareholder losses and then they are fighting back. ♪

rishaad: alibaba was the darling of the stock market but it is become the biggest source of shareholder losses but it is preparing a comeback as it prepares to report results. is it just a slowdown in china or is it more than this echo -- this? >> it is a combination but if you look at market valley it largest wealth destructor compared with the trading peak in november. that's combined with the fact that it is facing a lawsuit over counterfeit goods and a dispute with officials the bureau that

oversees consumer protections. rishaad: what are we talking about in terms of market capitalization losses? >> it is more than $90 billion if you look at the figures. the market value of goldman sachs which is why you see alibaba becoming the biggest destroyer of shareholder wealth. rishaad: jack ma trying to address this. yesterday we saw the 20% stake in suning. the clicks with bricks. >> that is one part of the strategy. they have a stronghold in household appliances and an extensive network which would help alibaba expand beyond the first-tier cities as it goes into the rural areas. they're finding it harder to track new customers in the larger cities and you see them having the strategy of going abroad, russia, brazil and the u.s. recently they brought on michael evans from goldman sachs .

>> what people will be looking at is the mobile advertising revenue from apps including we chat and qqq. that is one of the highlights they will be looking at. mobile kansas at the else that is a highlight but analysts have projected a slower growth in that area. rishaad: you have a lot of writing to do today. is watchingld google with interest as it separates the here and now from its so-called moonshot projects. he says he was excited but not surprised by the news. >> i think the technology community is enthusiastic about this because what larry is building -- he has the most amazing is this platform that has ever existed given its potential to invest and especially given their ambition.

there is no one in the world today maybe i handful of people who are as ambitious as larry. very excited about this. that the newld me ceo should be running the day-to-day operations a larry can focus on the future of humanity. it sounds a bit grandiose. take me inside the minds of larry page and sergei bring. for think they are doing it reasons they stated from the very beginning in the first investor letter of the company. they are here to build technology company that can change people's lives. i think they are the best at that or they are better at that than running day-to-day operations of any business simply because for them in particular, larry -- there are no two people like them in the world. who is one ofone the best technology executives

in the world and his business stilland very humble but a impatient in a good way, someone who likes to move fast and have them run the operation, someone who knows google deeply so they can focus or larry can focus on the moon shots, on finding things that will change the world but which could also be phenomenal businesses. emily: is it just because they want to work on moon shots and google is just google and it got boring? >> i don't think so. one way to look at this is that world's probably the most sophisticated investor and that he has invested google profits into projects that see further into the future than anyone else can see and certainly than anyone else could invest in as well. i'm pretty sure his commitment to investors will always be number one but his vision and his ambition are equally

important and i think completely unique. emily: he has a shot away from baking big investments into companies. could we see more acquisitions like that in the future? what does this mean for potential acquisition? >> it is probably early to say but i think this new organization structure -- alphabet -- gives google an option which they can exercise to find more tony's. with this organizational structure it is a company's structure and they can think of more interesting ways to attract and retain people. the can come up with different schemes that are probably impossible in the traditional google. they can do anything in terms of defining how the companies operate. it also comes with a much higher degree of reporting and

responsibility of accountability that probably didn't exist in the way that google was run today. it is also great for ambition but probably also for the investors. >> these are the stories making headlines around the world, u.s. prosecutors say they have broken up and allegedly insider trading ring that relies on hacking corporate dress releases before they were made public. they say hackers in the ukraine accessed 150,000 releases brokers in the u.s.. over a five years the hackers infiltrated the servers of pr newswire, market wire and business wire. five u.s. traders have been arrested with four more to come. charged with been importing cocaine into australia and could face a life sentence.

he is accused of importing 4.5 kilos of the drug and bars of soap found in his luggage after a flight from new delhi. police say it appears he was scammed by people he met online before his trip to india. masterpiece has been handed back to spain where it is considered a national treasure and not allowed to leave the country. the painting was seized on the boat of corsica at the end of last month and it was painted in latino six -- in 1906 and has been valued at $27 million. it is owned by the brother of the former head of the santander group. rishaad: coming up, profitable times coming out on top for steel despite falling prices. after the break all of the details live from mumbai.

rishaad: it is a busy week for corporate and it including results from some of the country's biggest names let's go to mumbai. steel, evenwith with falling demand we saw profits doubling. >> absolutely. a net profit in the june quarter this is adoubled but big but, it has been hit by combination of a slowdown in china and the devaluation of the russian ruble. those factors are leading to cheaper steel products and squeezing margins and europe and india. secondpany is europe's largest steel maker and it is

cautioning against significant uncertainty. standard steel being forced to cut costs and jobs where steel demand has languished after the financial crisis. meanwhile, india's biggest drugmaker posted a decline of nearly 60% and consolidated net profits to the june quarter and the companies in the process have been integrating after completing a $3.2 billion acquisition. a year ofus navigating the regulatory requirements to create the world's fist biggest pharma company by revenue. they hit shares selling -- sending it down nearly 5% during the day. indian banks have been hobbled market as thet slowdown inhibits their ability

to solve the debt. rishaad: that is it for this midweek edition of trending business. "asia edge" is coming up next. angie will join me. there was only one story, the devaluation of the yuan. ♪

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jon: with all the respect to mark -- rick perry this one is for free. >> on the show tonight, clinton and perry calling crews but first trump. if he leaves the race he dominates. the latest republican candidate strategy to deal with trump is to talk about hillary clinton. advanceat the library experts in which he is quoted as saying that isis grew while the notice states disengaged and ignored the threat.